Dollar Depreciates to ₹95.64
The US dollar extended its decline for a second consecutive trading session, weighed down by weaker-than-expected US non-farm payroll data. The USD/INR exchange rate slipped to ₹95.64, down from ₹96.57 recorded on July 27.
That reduced expectations of an immediate interest rate hike by the US Federal Reserve. A softer dollar generally supports commodity prices as metals become cheaper for buyers using other currencies.
Global Sentiments Improves
Industrial metals had been under pressure in recent weeks, as policymakers in the US signalled support for tighter monetary policy. However, sentiment improved as those concerns eased. Aluminium prices also stabilised as expectations of returning supplies from the Middle East increased. Shipping movement through the Strait of Hormuz has improved following the interim peace agreement between the US and Iran.
India VIX Falls 4%
Back home, market sentiment also remained supportive. India VIX fell nearly 4% to around 12, indicating lower volatility. This encouraged buying in cyclical sectors such as metals and mining.
Lloyds Metals & Energy Hits All-time High
Lloyds Metals & Energy led the rally and emerged as the top gainer in the index. The stock opened at ₹1,998.90 and touched an intraday high of ₹2,062.50. At this level, the stock was up more than 4%.
Volumes also supported the growth. Around 6.18 lakh shares changed hands during the session, higher than the 30-day average volume of 5.48 lakh shares.
The rally also came after the company reported its provisional operational update for Q1 FY27. The company had recorded its highest-ever first-quarter iron ore production of 6.05 million tonnes, up 53% from a year ago. Direct Reduced Iron (DRI) production stood at 182,000 tonnes, an increase of 131%. Pellet production reached 1.7 million tonnes, while copper production came in at 2,754 tonnes. Investors also await the company's Q1 FY27 financial results. The Board of Directors is scheduled to meet on August 6, 2026, to consider and approve the quarterly earnings.
SAIL Gains Over 6%
Ranking second in the rally was Steel Authority of India Ltd (SAIL). SAIL share price opened at ₹165.86 and later climbed to an intraday high of ₹175.90. This marked a gain of around 6% over its previous closing price of ₹165.85.
Company Posts Mixed Q1 Results
The buying followed the company's Q1 FY27 earnings announcement. The company reported a mixed set of results. Revenue increased 1.2% year-on-year to ₹26,245.6 crore from ₹25,921 crore in the same quarter last year. The figure was broadly in line with Street estimates of ₹26,250 crore.
Operating performance remained strong. EBITDA rose 50% year-on-year to ₹4,152.6 crore, exceeding the market estimate of ₹4,010 crore. EBITDA margin improved to 15.82% from 10.68% a year ago and was also higher than the expected 15.28%.
Net profit more than doubled to ₹1,644 crore from ₹745 crore in the corresponding quarter last year. However, it was marginally below analysts' expectation of ₹1,703 crore.
Jindal Steel Follows the Rally
Jindal Steel Ltd also joined the rally, with the stock gaining around 3% during the session.
Conclusion
Overall, metal stocks made a strong recovery after the previous session's decline. Improving global cues, a weaker US dollar, lower market volatility and company-specific triggers helped lift sentiments.
With earnings season still underway, investors will continue to track quarterly results and global commodity trends for further direction.
